Tesla Shares Poised to Hit New Record After Yearlong Pause

Tesla Inc. shares extended their recent surge on Monday, climbing as much as 4.9% and setting the stage for a potential record close. If the gains hold through the end of the regular session, the stock would finish at an all-time high for the first time since December 2024. The move comes even as concerns continue to grow around Tesla’s elevated valuation and whether the rally has outpaced fundamentals.

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The strength in the shares highlights a renewed wave of optimism among investors who appear willing to overlook valuation risks in favor of momentum and longer-term growth expectations.

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Tesla’s rally also reflects broader market dynamics, where high-profile technology and growth names have regained favor following months of volatility. For now, bullish sentiment appears strong enough to keep buyers engaged despite ongoing skepticism.

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The road back to record levels has been far from smooth. Tesla shares have more than doubled since hitting a low in early April, when global markets were rocked by a sharp selloff tied to President Donald Trump’s aggressive tariff push. That episode triggered a widespread retreat from risk assets and hit growth stocks particularly hard, with Tesla among the most heavily pressured names during the downturn.

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Since that spring selloff, the stock has mounted an impressive and at times uneven recovery. Improving market conditions, fading fears around trade disruptions, and a return of risk appetite have all helped fuel the rebound. The rally has also been amplified by investors positioning for upside in high-beta stocks as confidence gradually returned to equity markets.

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In early New York trading, Tesla shares reached as high as $481.37. Holding those levels through the close would allow the stock to set a new closing record, surpassing its previous high of $479.86 recorded on December 17 last year. Reclaiming and exceeding that milestone would mark a significant psychological win for bulls after months of sharp swings.

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Even so, questions around valuation remain front and center. Some market watchers argue that much of Tesla’s future growth is already priced into the stock, leaving little margin for disappointment. Others counter that the company’s long-term potential continues to justify investor enthusiasm, particularly in a market environment that still rewards dominant growth stories.

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For investors, Tesla’s latest move underscores how quickly sentiment can shift and how powerful momentum can be once it takes hold.
Whether the rally can be sustained from record levels will likely depend on broader market trends and the company’s ability to meet lofty expectations in the months ahead.

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